Cadence of Conflict: Asia, April 16, 2018

The war with China is becoming the war with Russia and China, it’s economic, it’s culminating, and Britain is double-involved.

Since the strike on Syria, Russia is angry and thumping the drums. They promised retaliation before. After, they really promised really retaliation next time. It almost seems that Trump is testing Russian and Chinese leadership—and North Korea and Republican and Democrat—and has called their bluff. That’s coming at the US via Europe. But, Germany is also taking rhetorical shots at China, bringing Europe back into the Pacific conflict.

Britain is in contemplating trade talks with Taiwan. The UK is already involved in the Pacific conflict with Hong Kong’s exit status—that China will have no involvement in Hong Kong matters for fifty years as a condition of Hong Kong not being British. With Britain “friending” up to Taiwan, we see more involvement from the Crown.

But, the main fuel in the Pacific conflict is economics. US sanctions are successfully driving Kim to the table; China is eager to work with Japan before a Kim-Trump talk disarms the North. So, the US sanctions are also driving China and Japan to do at least something.

Then, there’s China’s own economics. Germany is angry about Chinese investments in Europe. More news stories this week talk of Chinese using money as a hostile takeover tool in Sri Lanka and Pakistan. China’s ability to stand against a US trade war goes back to US Treasury bonds and the direct devaluing of China’s own currency. While different “experts” have differing opinions, money is the talk—everywhere.